Variations in a firm's tax rate and tax-related charges over time due to changing tax laws and regulations is called:
A)interest rate risk
B)business risk
C)tax risk
D)purchasing power risk
E)none of the above

Question

Quizplus · Accepted Answer

Tax risk refers to variations in a firm's tax rate and tax-related charges over time due to changing tax laws and regulations. Interest rate risk refers to the possibility of fluctuating interest rates affecting a firm's financial situation. Business risk refers to the risk associated with a firm's operations and industry. Purchasing power risk refers to the risk of inflation affecting the purchasing power of a currency. None of these accurately describe the scenario described in the question.

Variations in a Firm's Tax Rate and Tax-Related Charges Over